Govt 'should extend tax catch-up'

The government should ensure that a tax catch-up invitation is issued to people from all professions, as this could benefit the country and help those involved in investment planning.

John Whiting, tax policy director at the Chartered Institute of Taxation, has said that HM Revenue and Customs (HMRC) should expand the initiative – which is currently limited to tutors and coaches – to a far wider selection of Brits.

He welcomed the use of these tools as a realistic way to encourage those who have previously failed to comply with tax law to come forward and put their situation back in order voluntarily.

In addition to the scheme, he welcomed the use of offshore initiatives as a way of cost-effectively encouraging tax compliance.

Mr Whiting said: "There's a lot to be said for them because they publicise the issue and encourage people to get back on the straight and narrow."

Those who believe they have been taxed too much were recently issued guidance by the Low Incomes Tax Reform Group, which has produced a guide for taxpayers who have recently received a HMRC underpayment letter.